Sept 10 (Reuters) - Euro zone bond yields steadied on
Tuesday after a recent run of declines, as investors awaited
U.S. inflation data that could offer hints on the Federal
Reserve's rate-cutting path and the European Central Bank's
(ECB) policy decision later this week.
The German 10-year bond yield, the benchmark for
the euro zone bloc, was little changed at 2.178%. It touched a
one-month low of 2.147% on Friday.
Meanwhile, Germany's two-year bond yield, which
is more sensitive to changes in ECB rate expectations, was flat
at 2.224%. The yield also touched a more than one-month low of
2.208% on Monday.
The ECB is all but certain to cut rates by 25 basis points
on Thursday, with investors seeking clues on what action the
central bank might take after that. A widely anticipated debate
between U.S. presidential candidates Kamala Harris and Donald
Trump and U.S. inflation data on Wednesday will be among the
other main catalysts for markets.
Meanwhile, Italy announced the sale of up to 6.50 billion
euros in bonds on Monday.
Italy's 10-year yield was higher by 1 basis
point at 3.558%, and the gap between Italian and German Bunds
stood at 137 bps.